The victim is believed to be a 36-year-old South African woman, while those hurt included a number of foreign tourists along with Egyptian nationals.
Injured passengers were transferred to Luxor International hospital, according to local media reports.
The crash was caused by strong winds, which forced the balloon off course above the city’s ancient sites, Egyptian officials told the Associated Press news agency.
The incident is the latest of its kind involving hot-air balloons over Luxor in recent years with 19 foreign tourists - including three Britons – killed in 2013 after their balloon caught fire.
